The diamond market experienced a sluggish August, primarily due to seasonal factors and concerns about consumer demand, Rapaport said in a release. Polished diamond prices continued their downward trajectory as retailers and dealers adopted a cautious approach to buying.
The RapNet Diamond Index (RAPI) for various carat weights saw declines, with the index for 1-carat round, D to H, IF to VS2 diamonds falling by 1.1%. The removal of Chinese diamond listings from RapNet on 21st August due to low prices and additional fees contributed to a technical increase in the index.
Indian factories extended their vacations during the August public holidays, which will take time to impact inventories. The number of diamonds listed on RapNet grew by 4% between 1st July and 1st September, reaching 1.74 million. De Beers and Petra Diamonds postponed rough sales reflecting the industry’s efforts to reduce supplies.
Rapaport said that while the IIJS show in India indicated strong domestic demand for gold and jewellery, expectations for the September Jewellery & Gem World show in Hong Kong remain low due to slow Chinese natural diamond demand.
The G7 restrictions on diamond imports expanded to include 0.50-carat and larger goods as of 1st September. The US followed the European Union’s lead by exempting certain “grandfathered” goods.